Faced with delays and budget overruns – which can add billions to total project costs – mining and metals companies could significantly reduce the cost of large capital projects by improving planning and addressing workforce shortages, according to Accenture (NYSE: ACN) research on capital projects delivery in the mining and metals industries.

Accenture research estimates that metals and mining expenditures for capital projects will reach more than U.S. $140 billion in 20121, and between U.S. $1 trillion and U.S. $1.5 trillion during the period from 2011 to 20252. Even with the current downturn in commodity prices, long-term demand for minerals and metals, driven by economic growth and social development throughout the world, continues to spur investment in mining and metals. With $100 – $200 billion in annual spend, the impact of project delivery overruns on individual companies and the industry as a whole is enormous.

The research was based on 31 interviews with mining and metals executives with responsibility for capital projects around the world. Less than a third (30 percent) of the respondents report staying within 25 percent of approved budgets for all projects, and less than a fifth (17 percent) said they completed all projects within a 10 percent budget range.

Categories

Big4.com is the accounting, finance, tax, consulting, and IT professions' premier resource for career opportunities. For ten years we have focused on professionals and alumni of the Big Four Accounting and Consulting Firms: Accenture, Andersen, BearingPoint, Capgemini, Deloitte, Ernst & Young, KPMG, and PricewaterhouseCoopers PwC. The Big Four Job Board provides career opportunities with large accounting firms and top companies. Big Four News reports on key developments. Big Four Blog offers fresh insights. We connect with professionals through a strong social media presence on Twitter, LinkedIn, Facebook, and Xing. Big4.com is not affiliated with any Big Four firm.